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-qBVyMyXDdu.jpg "Police officers wearing face masks guard the US Capitol Building in Washington, US, May 14, 2020")
The International Monetary Fund (IMF) has urged the US to increase taxes in order to control the rising levels of debt.
At the same time, the IMF praised the strong and dynamic growth of the US economy and its progress in managing inflation.
In its "Article IV" review of US economic policies, the IMF expressed concern about the high deficits and debt, stating that they pose a risk to both the US and global economy.
The IMF also adjusted its 2024 US GDP growth forecast slightly downward to 2.6% and maintained a forecast of 1.9% for 2025, with growth expected to remain above 2% through the end of the decade.
The IMF acknowledged the resilience of the US economy, noting that it had been able to adapt to changing global conditions and meet expectations in terms of activity and employment.
The IMF also expects US inflation, as measured by the Personal Consumption Expenditures Price Index, to return to the Federal Reserve's 2% target by mid-2025, earlier than the Fed's own forecast.
